J.P. Morgan

J.P. Morgan said that in the fourth fiscal quarter of 2015, Sasha (00178.HK) same-store sales in Hong Kong and Macau increased by 0.9%. However, it was already revealed on February 28 that same-store sales increased 7% in the fourth fiscal quarter, meaning same-store sales recorded a double-digit decline in March. However, from the first fiscal quarter of 2016 until now, same-store sales have been weak, falling 4%. The bank continues to believe that short-term positive catalysts for salsa are limited.

Motong lowered the 2015/16/17 salsa test by 2%/14%/10%. Although valuations are relatively undervalued, as Sasha continues to generate strong cash flow and return on capital, short-term sales and gross profit will be challenged. Maintains its “neutral” rating. The target price was lowered from $4.6 to $3.8.